Bitcoin is the first widely used cryptocurrency, which turned the traditional world order of issues and circulation of money upside down. At one time, BTC became the most reliable financial instrument for online and offline transactions.
Anonymity, cryptographic protection methods, and lack of regulation by banking supervisory authorities characterize this cryptocurrency.
Advantages of BTC:
The main advantages are:
Lack of limits and intermediaries
Users can change any amount without restrictions and the participation of third parties.
All transactions are honest and transparent for the client.
Market processes can influence cryptocurrency’s price and the BCH/BTC rate, but not by economic and political news.
Protection and security
It is impossible to counterfeit or hack digital currency.
An excellent investment option
BTC is perceived by the cryptocurrency community more as a way to save and increase existing savings. The BCHBTC source code is based on the original Bitcoin protocol. The system uses the PoW algorithm, and the maximum turnover of coins is 21 million. The full block size of Bitcoin Cash has been increased from 1 MB to 32 MB.
Are Bitcoin Cash and Bitcoin different cryptocurrencies?
If we talk about the differences between BCH and BTC, then Bitcoin Cash is a hard fork of Bitcoin that solved the scalability problem by increasing the maximum block size.
The BTC platform can process from 3 to 7 transactions every second, with the cost of each ranging from $5 to $50. The BCH system can check up to 100 transactions per second with a minimum fee of a few cents.
BCH, unlike BTC, acts as a real currency. It can be used not only in the cryptocurrency market https://letsexchange.io/fiat/exchange/dzd-to-bft1, as a way of saving, but also as a functional payment instrument in business.
Instant payments allow you to receive money as soon as the client sends it. Commissions are significantly lower than for transfers between credit cards. There are also no refunds.
These cryptocurrencies can coexist and be used for different purposes. The Bitcoin blockchain system is no other than Bitcoin Cash; respectively, mining similarly takes place.
Coins are mined as a result of solving complicated mathematical problems. However, BTC and BCH are different cryptocurrencies. Therefore, you cannot send BCH to bitcoin addresses, and vice versa.
What should be considered when exchanging BCH and BTC?
The first thing you need to focus on when exchanging BCH / BTC is the type of rate:
It is more profitable when exchanging cryptocurrency for fiat in a growing market. Applications are processed manually, so withdrawals may take time.
The instability of the cryptocurrency market leads to the fact that at the time of registration of the exchange and the actual crediting of funds to the account, the exchange rate may be different; because of this, it is called floating.
This is the best option for market players who are willing to accept the exchange rate’s uncertainty for a small commission of 0.25%.
In this case, the buyer fixes the BCH BTC rate when placing an order, and the exchange is made according to it. This lets the user understand the conditions under which a cryptocurrency is bought or sold.
Thanks to the fixed exchange rate, you can avoid any risks associated with the currency’s collapse and changes in quotes. This option is more suitable for exchanging large amounts.